We came across a company, KeyGlee, that works with wholesalers and has homes in various states. We thought it would be great to have access to their inventory because we have a great network of motivated end buyers! We're rookie wholesalers and the last few JV deals we've reviewed seemed way overpriced. After asking, we were told there were Realtors ( Keller Williams, exp, local brokers, etc.) at the end of the deal (attached to the seller), which made a bit more sense why their homes were overpriced for the wholesale market.
We did some research and found a few other companies (mostly owned or backed Realtors) trying to offload aged listing at decent discounts when compared to FMV for a traditional homebuyer, but nowhere near attractive for the wholesale market. Is this common?
Having been Realtors we understand, especially as a listing agent, how important it is to get a home sold quickly and profitably. Offering a traditional listing on the wholesale market though seems desperate (for lack of a better word), especially if the Realtor isn't willing to price the house to sell in the wholesale market.
Questions:
- Is there an opportunity here to still make a wholesale deal without screwing over our end buyer or losing money ourselves?
- What is the best way to calculate the wholesale value of a home? Specifically one that's sight unseen (harder to determine repairs) - this has been our biggest battle with the company as they refuse to lower their price.